The Guardian, Independent and the online editions of the Telegraph and Financial Times report that Tzipi Livni’s Hatnuah party has become the first to reach an agreement with the Likud-Beitenu faction to join a coalition government led by Israel’s Prime Minister Benjamin Netanyahu. Under the agreement, Livni will serve as the Justice Minister, a post that she previously filled during the premiership of Ariel Sharon. Livni has also been handed special responsibility as a lead negotiator with the Palestinians. Revitalising the peace process was the major plank of her election campaign. Meanwhile, the coalition agreement will also see Hatnuah receive a second unspecified ministerial portfolio and chairmanship of a Knesset committee.

The Telegraph, Independent and its sister publication Independent i all cover a statement released by Netanyahu’s office which flatly denied that Ben Zygier, thought to be ‘Prisoner X’ had any contact with the Australian security and intelligence services. The revelations surrounding Zygier, who died in high-security Israeli detention in 2010, became public last week. There had been speculation that Zygier had leaked details of Mossad activities to Australian intelligence, prompting his arrest and detention in Israel. The Telegraph report also covers an Israeli inquest report into Zygier’s death from December 2012, which was released yesterday and concluded that Zygier hanged himself with a sheet and ruled out any suggestion of foul play in his death.

Meanwhile, the Times includes a report that Syrian opposition forces have warned Hezbollah that unless the Lebanese-based group stops fighting rebel forces in Syria within 48 hours, it will launch attacks against Hezbollah in Lebanon. Hezbollah and its Iranian patron are staunch allies of Syria’s embattled President Assad and it has been widely reported that Hezbollah members are actively fighting on Assad’s behalf against those seeking his downfall.

The online edition of the Independent reports comments made by Iran’s Foreign Ministry spokesman, who yesterday indicated that a “show of goodwill” by the P5+1 forum of Western countries at next week’s nuclear talks in Kazakhstan would be reciprocated by an Iranian response which would address Western concerns over its nuclear programme.

The Israeli media is largely dominated by the announcement that the Hatnuah Party led by Tzipi Livni will join a coalition government headed by Benjamin Netanyahu, with Livni becoming Justice Minister with special responsibility towards leading peace talks. It is the headline story in Yediot Ahronot, Haaretz, Makor Rishon and Israel Hayom and is also a prominent story in Maariv. Writing in Yediot Ahronot, Nahum Barnea questions whether Livni will be able to effectively lead peace negotiations given the hard-line stance of some of her Likud partners, while Sima Kadmon in Maariv accuses Livni of having sold her principles. Haaretz claims that Netanyahu has made progress in coalition talks with Shas while Israel Radio News suggests that Kadima will agree to join the government within the next two days. Meanwhile, Israel Radio News reports that the agreement with Livni will further complicate Netanyahu’s negotiations with Jewish Home.

In other news, Yediot Ahronot, Maariv and Haaretz all report on the results of an inquest into the death of Ben Zygier, which was published yesterday and accused the Israel Prisons Service of possible negligence over Zygier’s suicide. Maariv suggests that four inexperienced prison guards could face charges as a result, while Yediot Ahronot publishes claims by a prison services official that prison staff had warned that Zygier was suicidal.